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City manager outlines FY26 mill-levy recommendation as taxable valuation falls
Summary
City Manager Eric presented recommended fiscal year 2026 mill-levy rates (total 148.44 mills), explained a roughly 11.55% drop in taxable valuation due to state changes, and opened the public hearing; the final budget will be posted Sept. 2 with adoption expected Sept. 15 if needed.
City Manager Eric told the Columbia Falls City Council the city will recommend a total mill levy of 148.44 mills for fiscal year 2026, comprised of a general-fund levy of 108.55 mills, a fire-relief pension levy of 1.84 mills and a permissive medical levy of 38.05 mills.
Eric said the numbers derive from certified market values and tax values supplied by the Montana Department of Revenue and that the city’s taxable valuation declined about 11.55% because of amended state property-tax rates for 2025. He emphasized the reduction in taxable value is the reason the mill rate can rise even while total taxes paid by some residents drop.
The manager highlighted the effect of the resort tax: roughly 27% of the city’s total taxes come from the resort tax and 25% of resort-tax receipts are directed to property-tax relief. He also noted an FY25 reporting error that left eight mills unaccounted for in that year’s display; staff said the error was captured but does not translate directly into new revenue.
Eric opened the public hearing on the preliminary budget and tax levy calculation and said the final budget will be available for council review on Sept. 2, with adoption scheduled for Sept. 15 if needed. He invited residents to use backup slides and meeting minutes posted in the council packet to review the underlying calculations.
The council took no final adoption action at the meeting; the record shows staff will present updated figures at the next council meeting.
